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Wednesday, July 8, 2015

Market Summary -- 8th Jul 15

FTSE STI closed 3,284.99, down 55.94 points or -1.67% with a total volume of 1.82b and a total value of S$1.61b. Total number of advance vs decline was 73 vs 426. Of the 30 component index stocks, 4 closed positive, 2 unchanged and 24 in the red. The 4 gainer component stocks were :-

US markets closed positive yesterday and Asian bourses were all sold down sharply with Nikkei -3.14%, SSe -5.91% and HSI -5.84%. STI fell 1.67% in higher volume and value than past days with only 4 of the 30 index stocks posted gain.

US markets undergo a wild swing turning a near 1% loss to positive with concerns on Greece, China stock market and economic data from trade deficit. The submitted new Greece proposal according to US leaders was not much different from the pre-referendum and was rejected by EU leaders. As such, a deadline of tomorrow was set for Greek Government to resubmit a more detail and improved proposal for the bailout package prior to this Sunday EU Summit. China stock market continued the drop even after Chinese Government rolled out measures to try to support it. That created some fear and panic to regional markets. The sharp sell off today was mainly due to fear of Greece's future and China stock market.

STI was doing fine in the morning half of the session but the selling accelerate in the afternoon after SSE and HSI all plunged more than 5%. This is the sign of panic and fear that bargain hunters should be looked out for and should not missed.